Aspen Insurance Holdings Limited - Annual Reports

Aspen Insurance Holdings Limited

Annual Report & Accounts 2008

Front Cover: Fiona Rae Value Coordinate #1 It's Sweet! 2005 Oil and acrylic on canvas 213.5 x 176 cm The Aspen Re Collection, London Courtesy Timothy Taylor Gallery, London Photo: Prudence Cuming Associates Ltd

P r o p e r t y R e Worldwide Property Treaty Reinsurance

and Facultative Reinsurance, Credit Bond and Political Risk Reinsurance

C a s u a l t y R e International Casualty Treaty Reinsurance,

US Casualty Treaty Reinsurance and Casualty Facultative Reinsurance

International Insurance

UK Commercial Property (including Construction), UK Employers and Public Liability, Marine Hull, Energy, Marine and Specialty Liability, Aviation, Non-Marine Transportation Liability, Financial Institutions, Global Excess Casualty, Professional Liability, Financial and Political Risk, Management and Technology Liability, Specie Insurance and Specialty Reinsurance

US Insurance

Excess and Surplus Lines Property and Casualty consisting of General, Environmental, Professional and Product Liability Insurance, Specialty Construction, Property, Inland Marine and Natural Hazards

1

Aspen

at a glance

About Aspen

Aspen Insurance Holdings Limited (`Aspen') is a leading specialty insurance and reinsurance company, operating through wholly-owned subsidiaries and offices in Bermuda, the UK, the US, France, Ireland, Switzerland and Singapore.

Formed in 2002, the Bermudian holding company has been listed on the New York Stock Exchange since December 2003 (ticker symbol: AHL).

Aspen is a diversified, well-capitalized and strongly rated company, which provides carefully tailored underwriting solutions in select high value-added markets. The Company's progress is built on its ability to identify and respond swiftly to emerging opportunities and to operate across a wide range of geographies and specialist business lines. This approach is underpinned by robust and effective risk management, and has enabled Aspen to broaden its earnings stream, reduce its exposure to any particular risk or event and therefore sustain returns across the cycle.

Principal insurance subsidiaries

Aspen Insurance UK Limited (`Aspen UK') Aspen Insurance Limited (`Aspen Bermuda') Aspen Specialty Insurance Company (`Aspen Specialty') Aspen Underwriting Limited (`AUL') as corporate member of Lloyd's Syndicate 4711 (`Syndicate 4711')

Key strengths

Informed and disciplined approach to underwriting, aiming to deliver consistent shareholder returns

Strong balance sheet

Expertise, focus and presence in select high value-added markets

Development of long-term relationships with clients through excellent service

Investment in people and the development of talent

Strategic agility to realize opportunities and allocate capital effectively and efficiently

Diversified trading platform that increases access to business and aims to reduce earnings volatility

Enterprise-wide risk management as a core strategic enabler.

Diluted Book Value

Per Share at End of Year

Compound annual growth rate

US$

30

7.8%

25

20

15

10

5

0

04 05 06 07 08

Note: See Aspen's quarterly financial supplement for a reconciliation of operating income to net income, average equity to closing shareholders' equity and diluted book value per share to basic book value per share in the Investor Relations section of Aspen's website at aspen.bm

2

Strategic priorities

Resilient performance in face of challenging year

Improving returns through targeted management of the underlying drivers of return Focus on enhancing book value per share rather than top line growth To grow profitably when market conditions allow Enhancing investment income while sustaining security, liquidity and a strong rating profile Optimizing risk-adjusted return from the core risks of underwriting and investment, while minimizing non-core risks such as credit, liquidity and operational risk Reducing earnings volatility through increased portfolio diversification.

Operating ROE

% 25 20 15 10 5 0 -5 -10 -15

04 05 06 07 08

Financial highlights for the year ended December 31, 2008

Diluted book value per share up 3.8% on 2007 to US$28.10

Gross written premium of US$2 billion, up 10% on 2007, largely reflecting contribution of new underwriting teams

Net income of US$103.8 million, down 78.8% on 2007 as a result of Hurricanes Ike and Gustav and reduced investment returns

Net investment income of US$139.2 million, down 53.4% on 2007, attributable to US$97.3 million of losses from funds of hedge funds

Operating return on equity was 5.4% for the year (9.2% for the year excluding our funds of hedge funds performance, net of taxes)

Operating earnings per share of US$1.44, down 71.1% on 2007

Combined ratio of 95.6%, up from 83.0% in 2007 with 11.6 percentage points from Hurricanes Ike and Gustav.

Total Assets at End of Year

Compound annual growth rate

US$b 8

16.6%

6

4

2

0

04 05 06 07 08

Note: See Aspen's quarterly financial supplement for a reconciliation of operating income to net income, average equity to closing shareholders' equity and diluted book value per share to basic book value per share in the Investor Relations section of Aspen's website at aspen.bm

3

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download